MHIC MD Home Improvement Law 4 — Questions and Answers
Question 1: Under Maryland law, what is the maximum civil penalty the MHIC can impose on an unlicensed contractor per violation?
- $500
- $1,000
- $5,000 (Correct answer)
- $10,000
Correct answer: $5,000
The MHIC may impose a civil penalty of up to $5,000 per violation on unlicensed contractors.
Question 2: A homeowner pays a contractor $2,500 upfront for a $5,000 job, but the contractor never starts. The homeowner files a claim with the Guaranty Fund. What is the maximum the Fund will pay per claimant?
- $5,000
- $10,000
- $15,000 (Correct answer)
- $20,000
Correct answer: $15,000
The Maryland Home Improvement Guaranty Fund pays up to $15,000 per claimant for losses due to contractor misconduct.
Question 3: Which of the following actions triggers automatic suspension of an MHIC license?
- Filing a late renewal application
- Conviction of a felony involving moral turpitude (Correct answer)
- Receiving a single consumer complaint
- Hiring an unlicensed subcontractor once
Correct answer: Conviction of a felony involving moral turpitude
A felony conviction involving moral turpitude is grounds for automatic license suspension under Maryland law.
Question 4: Under Maryland's Home Improvement Law, a contractor must provide a written contract for any job costing more than:
- $100
- $250 (Correct answer)
- $500
- $1,000
Correct answer: $250
Maryland law requires a written contract for any home improvement job with a total price exceeding $250.
Question 5: A contractor wants to advertise home improvement services in Maryland. Which statement about advertising is correct?
- No license number is required in ads
- The MHIC license number must appear in all advertisements (Correct answer)
- Only print ads require a license number
- License numbers are only needed on written contracts
Correct answer: The MHIC license number must appear in all advertisements
Maryland requires that an MHIC licensee include their license number in all advertisements for home improvement services.
Question 6: How long must a licensed Maryland home improvement contractor retain copies of all contracts and related documents?
- 1 year
- 2 years
- 3 years (Correct answer)
- 5 years
Correct answer: 3 years
Maryland home improvement contractors must keep copies of contracts and related records for at least three years.
Question 7: Which entity in Maryland has the primary authority to investigate complaints against home improvement contractors and revoke licenses?
- Maryland Attorney General
- Maryland Department of Labor
- Maryland Home Improvement Commission (MHIC) (Correct answer)
- Maryland Board of Public Works
Correct answer: Maryland Home Improvement Commission (MHIC)
The Maryland Home Improvement Commission (MHIC) is the primary regulatory body empowered to investigate complaints and revoke contractor licenses.
MHIC MD Home Improvement Law 4
Under Maryland law, what is the maximum civil penalty the MHIC can impose on an unlicensed contractor per violation?